DEXUS — Interim / Quarterly Report 2009

Feb 17, 2009

DEXUS Funds Management Limited ABN 24 060 920 783 AFSL: 238163

Level 9, 343 George Street Sydney NSW 2000

PO Box R1822 Royal Exchange NSW 1225

Telephone 02 9017 1100 Direct 03 8611 2930 Facsimile 03 8611 2910

Email: karol.oreilly@dexus.com

Dear Sir / Madam

DEXUS Property Group (ASX: DXS) Results for announcement to the market

DEXUS Funds Management Limited, as responsible entity for DEXUS Property Group (DXS), provides the following documents to the Australian Stock Exchange:

• Appendix 4D Statement "Results for announcement to the market"; and
• Financial Statements of DEXUS Diversified Trust for the period ending 31 December 2008, including an Independent Auditor's Review Report from PricewaterhouseCoopers.

For further information, please contact:

CEO, DEXUS Property Group:	Victor Hoog Antink	(02) 9017 1129
Investor Relations:	Karol O'Reilly	(03) 8611 2930
Media Relations:	Emma Parry	(02) 9017 1133

Yours sincerely

Tanya Cox Company Secretary

18 February 2009

The Manager

20 Bridge Street Sydney NSW 2000

Australian Stock Exchange Limited

DEXUS Property Group (ASX: DXS) Appendix 4D

Results for announcement to the market

DEXUS Property Group ARSN 089 324 541

Financial reporting for the half year ended 31 December 2008

DEXUS Diversified Trust	Note 1
(ARSN 089 324 541)
		31 Dec 2008	31 Dec 2007	% change
		\$'000	\$'000
Revenue from ordinary activities		373,087	344,538	8.3%
Earnings from operating activities		251,400	254,400	-1.2%
Net profit attributable to security holders after tax and after minority interests		(954,260)	432,680	-320.6%
Distributions per security for the period ending		CPU	CPU
31 December	Note 2	3.80	5.90	-35.6%
		\$'000	\$'000
Total assets		9,574,976	9,692,728	-1.2%
Total borrowings		3,455,303	2,876,271	20.1%
Security holders equity		4,862,417	5,585,453	-12.9%
Market capitalisation		2,850,987	5,864,132	-51.4%
		\$ per unit	\$ per unit
Net tangible assets (excluding minority interests)		\$1.33	\$1.90	-30.0%
Securities price		\$0.82	\$2.00	-59.0%
Securities on issue ('000)		3,476,813	2,932,066	18.6%
Record date		31 Dec 2008	31 Dec 2007
Payment date		27 Feb 2009	29 Feb 2008

Distribution Reinvestment Plan (DRP)

DXS operates a DRP and details of the terms and conditions can be obtained from the DXS website at www.dexus.com

The record date for DRP election notices for the distribution period ending 31 December 2008 was 31 December 2008.

New entities

No new entities were acquired during the half year ended 31 December 2008.

Results commentary

DEXUS Property Group's distribution for the half year has decreased 35.6% to 3.8 cents per security primarily as a result of a reduction in the pay out ratio to 70% of funds from operations. Total assets decreased 1.2% over the period to \$9.6 billion at 31 December 2008. Net tangible assets per security decreased 30% to \$1.33 per security. Gearing (net of cash) has increased to 37.3% as at 31 December 2008. Specific movements in the Income Statement for the half year ended 31 December 2008 were:

• Revenue from ordinary activities was \$373 million (2007: \$345 million), up 8.3% primarily as a result of:
• Asset, property and development management fees resulting from the internalisation and consolidation of the management company from 21 February 2008
• Acquisition of Toronto, Canada in December 2007 and Perris, California in January 2008
• Currency impact in respect of international assets
• An increase in income arising from the underlying property portfolio

offset by:

• Disposal of the retail properties to DEXUS Wholesale Property Fund for \$950 million in October 2007
• Demolition of the Bligh St properties in Sydney and Albert St car park in Brisbane in early 2008
• Earnings from operating activities were \$251 million (2007: \$254 million) down 1.2 % primarily as a result of:
• Disposal of the retail properties to DEXUS Wholesale Property Fund for \$950 million in October 2007
• Profits arising from the sale of a 50% interest in the Coles Chilled Distribution Facility at North Laverton in the December 2007 period
• An increase in income arising from the underlying property portfolio

offset by:

• Asset, property and development management fees resulting from the internalisation and consolidation of the management company from 21 February 2008
• Acquisition of Toronto, Canada in December 2007 and Perris, California in January 2008
• Currency impacts in respect of international assets

• Demolition of the Bligh St properties in Sydney and Albert St car park in Brisbane in early 2008

• Net loss attributed to security holders after minority interests was \$954 million (2007: profit of \$433 million) down 320.6%, primarily as a result of:

• Impact of revaluation and impairments during the period compared to the prior period
• Net movements in the fair value of derivatives
• Profits arising from the sale of a 50% interest in the Coles Chilled Distribution Facility at North Laverton in the December 2007 period

offset by:

• Asset, property and development management fees resulting from the internalisation and consolidation of the management company from 21 February 2008
• Acquisition of CalWests 20% minority interest in the US JV in October 2007

Funds from operations per security was 5.43 cents (2007: 5.9 cents) resulting in a distribution per security of 3.8 cents (2007: 5.9 cents) a decrease of 35.6% primarily as a result of a reduction in the pay out ratio to 70% of funds from operations and the movement in earnings from operating activities referred to above.

Specific movements in the Balance Sheet for the half year ended 31 December 2008 were:

• Impact of revaluations and impairments during the period offset by currency impact in respect of international assets (\$825.3 million), recognition of the management rights, acquisitions and capital expenditure resulted in a decrease in total assets of 1.2% to \$9.6 billion (December 2007: \$9.7 billion).
• Total borrowings for the group increased 20.1% to \$3.5 billion (December 2007: \$2.9 billion) primarily as a result of currency impact (\$605.8 million) in relation to foreign denominated borrowings together with capital expenditure incurred during the period. This was partially offset by the December 2008 placement proceeds. Gearing (net of cash), on a look through basis, as at 31 December 2008 was 37.3% (December 2007: 31.3%).
• To ensure that group NTA is not impacted by currency fluctuations, the group has a fully hedged balance sheet, whereby currency translation movements in assets and liabilities are offsetting. This is represented by the natural hedge position reflected above. That is, currency related movements in international assets of \$825.3 million, and broadly equivalent movements in international liabilities of \$804.2 million, represented by movement in foreign denominated borrowings of \$605.8 million and unrealised currency movement in the value of cross currency swaps of \$198.4 million liability.
• Net tangible assets per security were \$1.33 (December 2007: \$1.90), a decrease of 30 % primarily as a result of revaluations and impairments, movement in fair value of derivatives and impact of placement and DRP during the period.

For additional information regarding the results of DEXUS Property Group for the half year ended 31 December 2008, refer to the attached ASX Release. Attached with this Appendix 4D is a copy of the Financial Statements for the half year ended 31 December 2008, together with the Independent Auditors Review Report from PricewaterhouseCoopers.

Notes

Note 1: For the purposes of statutory reporting, the stapled entity, known as DXS, must be accounted for as a consolidated group. Accordingly, one of the stapled entities must be the "deemed acquirer" of all other entities in the group. DEXUS Diversified Trust has been chosen as the deemed acquirer of the balance of the DXS stapled entities, comprising DEXUS Industrial Trust, DEXUS Office Trust and DEXUS Operations Trust.

Note 2: The distribution for the period 1 July 2008 to 31 December 2008 is the aggregate of the distributions from DEXUS Diversified Trust, DEXUS Industrial Trust and DEXUS Office Trust. The Annual Tax Statement, issued as at 30 June 2009, will provide details of the components of DXS' distributions.

FINANCIAL STATEMENTS DEXUS DIVERSIFIED TRUST

(ARSN 089 324 541)

HALF YEAR FINANCIAL REPORT 31 DECEMBER 2008

Contents	Page
Directors' Report	1
Auditor's Independence Declaration	3
Income Statement	4
Balance Sheet	5
Statement of Changes in Equity	6
Cash Flow Statement	7
Notes to the Financial Statements	8
Directors' Declaration	28
Independent Auditor's Review Report	29

DEXUS Property Group (ASX Code: DXS), consists of DEXUS Diversified Trust (DDF), DEXUS Industrial Trust (DIT), DEXUS Office Trust (DOT), and DEXUS Operations Trust (DXO), (DXS).

Under Australian equivalents to International Financial Reporting Standards (AIFRS), DDF has been deemed the parent entity for accounting purposes. Therefore the DDF consolidated Financial Statements include all entities forming part of DXS.

All press releases, financial reports and other information are available on our website: www.dexus.com

DEXUS DIVERSIFIED TRUST Page 1 of 30 DIRECTORS' REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2008

The Directors of DEXUS Funds Management Limited (DXFM) as Responsible Entity of DEXUS Diversified Trust (DDF or the Trust) and its consolidated entities, DEXUS Property Group (DXS or the Group) present their Directors' Report together with the consolidated Financial Statements for the half year ended 31 December 2008.

The Trust together with DEXUS Industrial Trust, DEXUS Office Trust and DEXUS Operations Trust form the DEXUS Property Group stapled security.

Directors

The following persons were Directors or Alternate Directors of DXFM at all times during the half year and up to the date of this Directors' Report:

C T Beare BSc, BE (Hons), MBA, PhD, FAICD 1,5,6

• E A Alexander AM, BComm, FCA, FAICD, FCPA 1,2,3,4,6
• B R Brownjohn, BComm 1,2,3,6
• S F Ewen OAM, FILE 1,5
• V P Hoog Antink, BComm, MBA, FCA, FAPI, FRICS, MAICD
• C B Leitner III, BA
• B E Scullin, BEc 1,2,3,4,5 A J Fay, BAg.Ec (Hons), ASIA (Alternate to C B Leitner)

1 Independent Director

• 2 Audit Committee Member
• 3 Risk Committee Member
• 4 Compliance Committee Member
• 5 Nomination and Remuneration Committee Member

6 Finance Committee Member

No Directors held an interest in the Trust as at 31 December 2008 or at the date of this report.

Review and results of operations

During the half year, the operations of DEXUS Property Group consisted of investment in real property in Australia, Europe, New Zealand, Canada and the United States.

The results for the half year ended 31 December 2008 were:

• (Loss)/profit attributable to stapled security holders was (\$954.3 million) (2007: \$432.7 million);
• Funds From Operations (FFO)1 was \$188.7 million (2007: \$173.0 million);
• Distributions paid and payable to stapled security holders was \$132.1 million being 70% of FFO (2007: \$173.0 million);
• Total assets were \$9.6 billion (Jun 2008: \$9.3 billion); and
• Net assets were \$5.1 billion (Jun 2008: \$5.8 billion).

Significant changes in the state of affairs

The Directors are not aware of any matter or circumstance, not otherwise dealt with in this Directors' Report or the Financial Statements that has significantly or may significantly affect the operations of DXS, the results of those operations, or the state of the DXS's affairs in future financial years.

Rounding of amounts and currency

DXS is a registered scheme of a kind referred to in Class Order 98/0100, issued by the Australian Securities and Investments Commission, relating to the "rounding off" of amounts in this Directors' Report and the Financial Statements. Amounts in this Directors' Report and Financial Statements have been rounded off in accordance with that Class Order to the nearest thousand dollars, unless otherwise indicated. All figures in this Directors' Report and the Financial Statements, except where otherwise stated, are expressed in Australian dollars.

¹ Funds From Operations (FFO) or distributable income is often used as a measure of real estate operating performance after finance costs and taxes. It represents AIFRS profit after tax attributable to stapled security holders adjusted for: property revaluations, derivative and FX mark to market impacts, amortisation of tenant incentives and lease commissions, profit and loss on sale of assets, straight line rent adjustments, deferred tax expense and DEXUS RENTS Trust capital distribution

DEXUS DIVERSIFIED TRUST Page 4 of 30 INCOME STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2008

	Notes	31 Dec 2008 \$'000	31 Dec 2007 \$'000
Revenue from ordinary activities
Property revenue		342,767	339,304
Management fee income		28,333	-
Interest revenue		1,987	5,234
Total revenue from ordinary activities		373,087	344,538
Share of net profits of associates accounted for using the equity method		27	1,472
Net (loss)/gain on sale of investment properties		(437)	7,285
Net fair value gain of investment properties Net foreign exchange gain		- 154	336,090 2,220
Other income		523	67
Total income		373,354	691,672
Expenses
Property expenses		(82,630)	(82,192)
Responsible Entity fees		-	(17,243)
Finance costs	2	(485,817)	(144,776)
Net fair value loss of investment properties		(702,172)	-
Net fair value loss of derivatives		(20,736)	(10,837)
Depreciation and amortisation		(2,440)	(1,063)
Impairment Employee benefits expense		(70,872) (30,829)	- -
Other expenses		(12,672)	(4,176)
Total expenses		(1,408,168)	(260,287)
(Loss)/profit before tax		(1,034,814)	431,385
Tax benefit
Income tax (expense)/benefit		(647)	1,832
Withholding tax benefit		83,568	4,400
Total tax benefit		82,921	6,232
(Loss)/profit after tax		(951,893)	437,617
(Loss)/profit attbributable to:
Equity holders of the parent entity		(177,477)	70,271
Equity holders of other stapled entities (minority interest)		(776,783)	362,409
Stapled security holders		(954,260)	432,680
Net (loss)/profit attributable to other minority interests		2,367	4,937
Net (loss)/profit		(951,893)	437,617
Earnings per unit		Cents	Cents
Basic earnings per unit on (loss)/profit attributable to equity holders of the parent entity	13	(5.69)	2.41
Diluted earnings per unit on (loss)/profit attributable to equity holders of the
parent entity	13	(5.69)	2.41
The above Income Statement should be read in conjunction with the accompanying notes.
Earnings per unit
Basic earnings per unit on (loss)/profit attributable to stapled security holders Diluted earnings per unit on (loss)/profit attributable to stapled security	13	(30.61)	14.82
holders	13	(30.61)	14.82

DEXUS DIVERSIFIED TRUST Page 5 of 30 BALANCE SHEET AS AT 31 DECEMBER 2008

	Notes	31 Dec 2008	30 Jun 2008
		\$'000	\$'000
Current assets Cash and cash equivalents		98,368	99,214
Receivables		46,392	36,457
Derivative financial instruments		200,165	191,162
Current tax assets		6,041	124
Other		15,698	9,372
Total current assets		366,664	336,329
Non-current assets
Investment properties	3	8,334,930	8,182,295
Property, plant and equipment	4	483,282	443,633
Investments accounted for using the equity method	5	130,334	111,946
Deferred tax assets		19,422	14,882
Intangible assets	6	233,851	255,113
Other		6,493	4,789
Total non-current assets		9,208,312	9,012,658
Total assets		9,574,976	9,348,987
Current liabilities
Payables		125,624	118,396
Interest bearing liabilities	7	603,745	576,131
Current tax liabilities		1,491	1,019
Provisions		140,629	194,314
Derivative financial instruments		732,469	97,078
Other		878	1,799
Total current liabilities		1,604,836	988,737
Non-current liabilities
Interest bearing liabilities	7	2,851,558	2,430,788
Deferred tax liabilities		27,598	76,543
Provisions		10,929	9,818
Other		10,511	8,048
Total non-current liabilities		2,900,596	2,525,197
Total liabilities		4,505,432	3,513,934
Net assets		5,069,544	5,835,053
Equity
Equity attributable to equity holders of the parent entity
Contributed equity	8	1,437,220	1,297,831
Reserves		(5,467)	1,248
Undistributed income		478,216	705,510
Parent entity equity holders' interest		1,909,969	2,004,589
Equity attributable to equity holders of other stapled entities (minority
interest)
Contributed equity	8	2,492,517	2,280,052
Reserves		30,767	49,689
Undistributed income		429,164	1,294,725
Other stapled security holders' interest		2,952,448	3,624,466
Stapled security holders' interest		4,862,417	5,629,055
Other minority interests		207,127	205,998
Total equity		5,069,544	5,835,053

The above Balance Sheet should be read in conjunction with the accompanying notes.

DEXUS DIVERSIFIED TRUST Page 6 of 30 STATEMENT OF CHANGES OF EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2008

	Notes	31 Dec 2008 \$'000	31 Dec 2007 \$'000
Total equity at the beginning of the year		5,835,053	5,704,943
Exchange differences on translation of foreign operations Impairment of intangible asset	6	(4,744) (20,893)	(5,174) -
Net income recognised directly in equity		(25,637)	(5,174)
Net (loss)/profit for the period		(951,893)	437,617
Total recognised income and expense for the period		(977,530)	432,443
Transactions with equity holders in their capacity as equity holders:
Contributions of equity, net of transaction costs	8	351,854	70,687
Distributions provided for or paid Transactions with other minority interest:	9	(132,119)	(172,992)
Contributions of equity, net of transaction costs		372	1,690
Distributions provided for or paid Disposal of other minority interests	9	(8,894) -	(8,601) (265,989)
Foreign currency translation reserve		808	29,293
Total transactions with equity holders		212,021	(345,912)
Total equity at the end of the period		5,069,544	5,791,474
Total recognised income and expense for the period is attributable to:
Equity holders of the parent entity - DDF unitholders		(184,192)	69,742
Equity holders of other stapled entities (minority interest)		(795,705)	357,764
Equity holders of DEXUS Diversified Trust		(979,897)	427,506
Other minority interests		2,367	4,937
Total recognised income and expense for the period		(977,530)	432,443

The above Cash Flow Statement should be read in conjunction with the accompanying notes.

DEXUS DIVERSIFIED TRUST Page 7 of 30 CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Notes	31 Dec 2008	31 Dec 2007
Cash flows from operating activities	\$'000	\$'000
Receipts in the course of operations (inclusive of GST)	427,828	381,477
Payments in the course of operations (inclusive of GST)	(172,263)	(136,829)
Interest received	1,920	5,337
Finance costs paid to financial institutions	(98,748)	(94,693)
Distributions received	-	4,810
Dividends received	-	3,250
Income and withholding taxes paid	(8,332)	(3,686)
Net cash inflow from operating activities	150,405	159,666
Cash flows from investing activites
Proceeds from sale of investment properties	8,184	1,007,909
Disposal of cash in Bent St Trust	-	(46)
Payments for capital expenditure on investment properties	(66,607)	(95,667)
Payments for investment properties	-	(177,226)
Payments for acquisition of investments net of cash	-	(253,179)
Payments for investments accounted for using the equity method	(14,323)
Payments for property, plant and equipment	(14,337)	(28,470)
Payments for capital expenditure on property, plant and equipment	(83,454)	(53,527)
Net cash (outflow)/inflow from investing activities	(170,536)	399,794
Cash flows from financing activities
Issue of units	301,617	-
Establishment expenses and unit issue costs	(7,849)	-
Equity issued to other minority interests	372	1,444
Proceeds from borrowings	1,256,260	1,278,681
Repayment of borrowings	(1,412,798)	(1,708,867)
Distributions paid to security holders	(124,301) (4,651)	(94,305)
Distributions paid to other minority interests		(8,361)
Net cash inflow/(outflow) from financing activities	8,650	(531,408)
Net (decrease)/increase in cash and cash equivalents	(11,481)	28,052
Cash and cash equivalents at the beginning of the period	99,214	59,603
Effects of exchange rate changes on cash and cash equivalents	10,635	1
Cash and cash equivalents at the end of the period	98,368	87,656

DEXUS DIVERSIFIED TRUST Page 8 of 30 CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Note 1. Summary of significant accounting policies

(a) Basis of preparation

In accordance with AASB Interpretation 1002: Post-Date-of-Transition Stapling Arrangements, the entities within DXS must be consolidated. The parent entity and deemed acquirer of DIT, DOT and DXO is DDF.

The DDF Consolidated column represents the consolidated result of DDF, which comprises DDF and its controlled entities, DIT and its controlled entities, DOT and its controlled entities and DXO and its controlled entities. Equity attributable to other entities stapled to DDF is a form of minority interest in accordance with AASB 1002 and, in the DDF consolidated column, represents the equity of DIT, DOT and DXO. Other minority interests represent the equity attributable to parties external to DXS.

DEXUS Property Group stapled securities (DXS) are quoted on the Australian Stock Exchange under the code "DXS" and comprise one unit in each of DDF, DIT, DOT and DXO. Each entity forming part of DXS continues as a separate legal entity in its own right under the Corporations Act 2001 and is therefore required to comply with the reporting and disclosure requirements under the Corporations Act 2001 and Australian Accounting Standards.

DEXUS Funds Management Limited as Responsible Entity for each entity within DXS may only unstaple if approval is obtained by special resolution of the stapled security holders.

This general purpose interim financial report for the half year ended 31 December 2008 has been prepared in accordance with the requirements of the Trust's Constitution, AASB 134: Interim Financial Reporting and the Corporations Act 2001.

This financial report is prepared on the going concern basis and in accordance with historical cost conventions and has not been adjusted to take account of either changes in the general purchasing power of the dollar or changes in the values of specific assets, except for the revaluation of certain derivatives, other financial instruments and investment properties and the impairment of intangible assets and property, plant and equipment.

The financial report does not include notes of the type normally included in an annual financial report. Accordingly this report is to be read in conjunction with the annual financial report for the year ended 30 June 2008 and any public pronouncements made by DXS during the half year in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.

(b) Critical accounting estimates

The preparation of Financial Statements may require the use of certain critical accounting estimates and management to exercise its judgement in the process of applying the Trust's accounting policies. Other than the estimation of fair values relating to derivatives and other financial instruments, investment properties and intangible assets, no key assumptions concerning the future or other estimation of uncertainty at the reporting date have a significant risk of causing material adjustments to the Financial Statements in the next reporting period. The accounting policies followed in relation to the determination of these critical accounting estimates are the same as those applied in the Financial Statements of DDF for the year ended 30 June 2008.

Uncertainty around property valuations

The global market for many types of real estate has been severely affected by the recent volatility in global financial markets. The lower levels of liquidity and volatility in the banking sector have translated into a general weakening of market sentiment towards real estate and the number of real estate transactions has significantly reduced.

Fair value of investment property is the price at which the property could be exchanged between knowledgeable, willing parties in an arm's length transaction. A "willing seller" is not a forced seller prepared to sell at any price. The best evidence of fair value is given by current prices in an active market for similar property in the same location and condition.

The current lack of comparable market evidence relating to pricing assumptions and market drivers means that there is less certainty in regard to valuations and the assumptions applied to valuation inputs. The period of time needed to negotiate a sale in this environment may also be significantly prolonged.

The fair value of investment property has been adjusted to reflect market conditions at the end of the reporting period. While this represents the best estimates of fair value as at the balance sheet date, the current market uncertainty means that if investment property is sold in future the price achieved may be higher or lower than the most recent valuation, or higher or lower than the fair value recorded in the Financial Statements.

DEXUS DIVERSIFIED TRUST Page 9 of 30 CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2008

(c) Rounding of amounts

The Trust is the kind referred to in Class Order 98/0100, issued by the Australian Securities and Investment Commission, relating to the rounding off of amounts in the financial report. Amounts in the financial report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar.

Note 2. Finance costs

	31 Dec 2008 \$'000	31 Dec 2007 \$'000
Interest paid/payable	100,280	99,402
Amount capitalised	(18,227)	(7,042)
Other finance costs	1,548	1,672
Net fair value loss of interest rate swaps	402,216	50,744
Total finance costs	485,817	144,776

The average capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 6.70% (2007: 6.13%).

DEXUS DIVERSIFIED TRUST Page 10 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Note 3. Investment properties

(a ) Pro rtie pe s	Ow rsh ip ne	Ac isit ion qu da te	Co inc lud ing st all ad dit ion s	Ind de nt ep en lua tio n d ate va	Ind de nt ep en lua tio va n nt am ou	Ind de nt ep en lue va r	Co oli da ted ns bo ok lue va 31 De c 2 00 8	Co lida ted nso boo k v alu e 30 Ju 20 08 ne
			\$ '00 0		\$ '00 0		\$ '00 0	\$ '00 0
Kin Pa rk Ind ust ria l E sta te, Bo s R d, Ma NS W gs wm an oa ray on g,	100 %	Ma 199 0 y	80 98 0 ,	Ju n 2 00 8	10 4, 00 0	(e )	99 00 0 ,	104 00 0 ,
Ta t D istr but ion Ce ntr Lot 1, Ta Av Alt a N ort h, VIC rge e, ra en ue on ,	100 %	Oc t 1 99 5	25 53 8 ,	De c 2 00 7	37 50 0 ,	(a )	32 00 0 ,	34 20 0 ,
Ax s C te Pa rk, 164 - 1 80 Fo rst Ro ad 11 & 2 1 - 45 Gil by xes orp ora er ,
Ro ad 30 7 - 35 5 F tre e G ully Ro ad Mo unt W rley VIC ern ave , , ,	100 %	Oc t 1 99 6	15 7, 44 1	Ju n 2 00 8	19 2, 65 0	( i)	193 43 7 ,	192 65 0 ,
oxf oxf VIC Kn ield In du str ial Es tat 20 He nde n R d, Kn ield e, rso oa ,	100 %	Au 199 6 g	312 30 ,	Ju n 2 00 6	37 05 0 ,	( f)	35 34 4 ,	35 30 0 ,
12 Fre de rick St St Leo rds NS W t, ree na ,	% 100	Ju l 20 00	25 59 1 ,	Ju n 2 00 7	38 00 0 ,	( f)	05 37 6 ,	37 00 0 ,
40 Ta lav Ro ad No rth Ry de NS W era , ,	100 %	Oc t 2 00 2	112 33 ,	De c 2 00 6	31 20 0 ,	( d)	31 00 0 ,	33 91 0 ,
2 A lsp Pla Ea ste Cre ek NS W ec ce rn , ,	100 %	Ma r 2 004	23 62 0 ,	De c 2 00 8	24 80 0 ,	( f)	24 80 0 ,	24 80 0 ,
Re dw d G ard s I nd ust ria l E sta te Sta s 3 5, 6 & 7 d L ot 4, oo en ge an ,
Din ley Vic g ,	100 %	De c 1 994	26 75 1 ,	Ju n 2 00 8	30 25 0 ,	(e )	30 00 0 ,	30 25 0 ,
t S Sy NS 44 Ma rke tre et, dn W ey ,	100 %	Se 198 7 p	18 0, 07 5	Ju n 2 00 8	22 5, 00 0	(e )	21 8, 00 0	22 5, 00 0
8 N ich ols Str Me lbo VIC eet on urn e, ,	100 %	No v 1 99 3	70 09 2 ,	De c 2 00 7	10 6, 50 0	(e )	99 24 6 ,	99 00 0 ,
130 G St t & 10 5 P hill ip Str t, Pa tta NS W eo rge ree ee rra ma ,	100 %	Ma 199 7 y	10 0, 83 9	De c 2 00 8	90 00 0 ,	(a )	90 00 0 ,	92 00 0 ,
Flin de Ga te Co lex 172 Fl ind St t & 18 9 F lind La rs mp ers ree ers ne , ,
Me lbo VIC urn e,	100 %	Ma r 1 99 9	142 16 ,	De c 2 00 8	150 25 ,	( i)	25 150 ,	21 35 0 ,
38 3 - 39 5 K ent St t, Sy dn NS W ree ey ,	100 %	Se 198 7 p	10 6, 28 2	Ju n 2 00 8	15 3, 00 0	( f)	139 00 0 ,	153 00 0 ,
14 Mo St Ca nbe AC T** t, ore ree rra ,	100 %	Ma 20 02 y	804 37 ,	De c 2 00 7	49 50 0 ,	(a )	46 70 1 ,	46 50 0 ,
1 Sy dn CB D F loo r S ey pac e	9%	Ju l 20 00	19 6	n/a	-	-	196	2, 174
We stf ield W hitf ord Ci ty Sh ing Ce ntr e M ion & Wh itfo rds op p arm
2 Av Hil lary WA en ue s, ,	50 %	Oc t 1 984	13 0, 92 7	Ju n 2 00 7	25 2, 35 0	( f)	25 5, 1 77	25 35 0 5,
2 We stf ield W hitf ord s A Lo t 6 En de Ro ad Hil lary WA ve nue avo ur s, ,	50 %	De c 1 992	5, 50 6	Ju n 2 00 7	24 65 0 ,	( f)	24 65 0 ,	24 65 0 ,
Co s S VIC ** 34 - 6 0 L ittle llin tre et, Me lbo urn e,	100 %	No v 1 984	186 16 ,	De c 2 00 8	40 90 0 ,	( i)	40 90 0 ,	41 00 0 ,
32 - 4 4 F lind St Me lbo VIC t, ers ree urn e,	% 100	Ju n 1 99 8	21 33 1 ,	De c 2 00 8	38 80 0 ,	( i)	38 80 0 ,	32 592 ,
Flin de Ga te Ca rk, 172 - 1 89 Flin de Str eet Me lbo VIC rs rpa rs urn e, ,	100 %	Ma r 1 99 9	47 32 8 ,	De c 2 00 8	54 60 0 ,	( i)	54 60 0 ,	39 26 3 ,
38 3 - 39 5 K ent St t, Sy dn NS W ree ey ,	100 %	Se 198 7 p	30 25 7 ,	Ju n 2 00 8	65 00 0 ,	( f)	62 00 0 ,	65 00 0 ,
Jo hn Ma rtin 's C ark & Re tai l P laz a J oin t V ent arp ure	1%	Se 199 4 p	-	n/a	-	-	100	100
9 S t H illie Ro ad Au bu NS W 77 - 7 rs rn, ,	10 0%	Se 199 7 p	39 44 1 ,	Ju n 2 00 7	45 25 0 ,	(a )	47 00 0 ,	47 28 1 ,
3 B kho llow Av Ba ulk ha Hil ls, NS W roo en ue m ,	10 0%	De c 2 002	34 61 0 ,	Ju n 2 00 8	54 80 0 ,	( f)	42 34 6 ,	44 80 0 ,
1 G NS ari l R d, Be lros W ga oa e,	0% 10	De c 1 99 8	23 44 6 ,	Ju n 2 00 7	31 00 0 ,	( d)	25 70 0 ,	28 80 0 ,

1 This relates to heritage floor space retained following the disposal of 1 Chifley Square, Sydney. During the interim period a portion of this floor space was disposed of for \$ 1.4 million.

2 The valuation reflects 50 percent of the independent valuation amount.

The title to all properties is freehold, with the exception of the properties marked ** which are leasehold.

DEXUS DIVERSIFIED TRUST Page 11 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

(a ) Pro rtie pe s	Ow rsh ip ne	Ac isit ion qu	Co st inc lud ing	Ind de nt ep en	Ind de nt ep en	Ind de nt ep en	Co oli da ted ns	Co lida ted nso
		da te	dit ion all ad s	tio lua n d ate va	tio lua va n	lue va r	bo ok lue va	boo k v alu e 30 Ju 20 08 ne
			\$ '00 0		nt am ou \$ '00 0		31 De c 2 00 8 \$ '00 0	\$ '00 0
2 M inn a C los Be lros NS W e, e,	% 100	De c 1 99 8	36 03 0 ,	Ju n 2 00 7	35 00 0 ,	( d)	34 28 4 ,	33 00 0 ,
114 - 1 20 Old Pi ttw ate r R d, Bro okv ale NS W oa ,	100 %	Se 199 7 p	34 92 8 ,	De c 2 00 8	48 00 0 ,	( f)	48 00 0 ,	51 50 0 ,
145 - 1 51 Art hu r S Fle min NS W tre et, ton g ,	100 %	Se 199 7 p	24 83 5 ,	De c 2 00 7	37 90 0 ,	( i)	32 60 0 ,	35 00 0 ,
43 6 - 48 4 V icto ria Ro ad Gla de svi lle, NS W ,	100 %	Se 199 7 p	28 62 6 ,	Ju n 2 00 7	53 00 0 ,	(e )	51 50 0 ,	55 00 0 ,
1 F nda tio n P lac Gr NS W tan ou e, eys es ,	100 %	De c 2 002	39 28 7 ,	Ju n 2 00 8	48 00 0 ,	(a )	45 80 0 ,	48 00 0 ,
5 - 15 Ro be Av & 2 5 - 55 Ro ths ch ild Av Ro be se rry en ue en ue se ry, ,		Ap r 1 99 8 &
NS W	100 %	Oc t 2 00 1	74 148 ,	Ju n 2 00 8	10 2, 70 0	( d)	93 30 0 ,	102 70 0 ,
10 - 1 6 S h S Ry da lme NS W out tre et, re,	% 100	Se 199 7 p	156 37 ,	De c 2 00 8	44 00 0 ,	(e )	44 00 0 ,	48 00 0 ,
19 Ch ifle Str eet Sm ithf ield NS W y , ,	100 %	De c 1 99 8	183 12 ,	Ju n 2 00 8	18 35 0 ,	( i)	18 37 4 ,	18, 35 0
Po und Ro ad We Da nde VIC st, no ng ,	% 100	Ja n 2 004	73 67 7 ,	De c 2 00 7	81 55 0 ,	(g )	82 00 0 ,	91 48 6 ,
352 M ula Ro ad Ke nsi ton VIC aca y ng , ,	100 %	Oc t 1 99 8	7, 69 1	De c 2 00 7	10 00 0 ,	(a )	8, 20 0	9, 100
DE XU S I nd ria l E Bo und Ro ad Lav No rth VIC ust sta te, ert ary on , ,	100 %	Ju l 20 02	10 9, 27 0	De c 2 00 7	85 90 0 ,	( i)	109 00 0 ,	81 40 0 ,
So C 25 0 F st Ro ad uth La VI ore ra, ,	100 %	De c 2 002	37 81 6 ,	Ju n 2 00 8	44 75 0 ,	(a )	48 75 8 ,	44 75 0 ,
15 - 2 3 W hic ker Ro ad Gil lma SA n, ,	100 %	De c 2 002	20 28 2 ,	De c 2 00 8	26 80 0 ,	(e )	26 80 0 ,	25 80 0 ,
n S Q 25 Do nki tre et, Bri sba LD ne ,	100 %	De c 1 99 8	19 38 9 ,	De c 2 00 7	35 60 0 ,	(e )	33 50 0 ,	35 80 0 ,
52 Ho lbe che Ro ad Arn de ll P ark NS W , ,	100 %	Ju l 19 98	11 37 8 ,	Ju n 2 00 8	13 50 0 ,	( f)	13 51 1 ,	13, 50 0
3 - r S NS 7 Be tre et, Bla ckt W sse me ow n,	100 %	Ju n 1 99 7	11 22 0 ,	De c 2 00 8	9, 85 0	(a )	9, 85 0	11, 100
30 - 3 2 B Str eet Bla ckt NS W ess em er ow n, ,	100 %	Ma 199 7 y	12 44 0 ,	De c 2 00 8	16 30 0 ,	(e )	16 30 0 ,	19, 044
27 - 2 9 L ibe Ro ad Hu ntin d, NS W rty gw oo ,	100 %	Ju l 19 98	108 8,	Ju n 2 00 8	9, 65 0	(a )	8, 90 0	9, 65 0
154 O 'Ri ord Str eet Ma t, NS W an sco ,	100 %	Ju n 1 99 7	11 11 1 ,	De c 2 00 8	15 00 0 ,	( i)	15 00 0 ,	15, 00 0
11 Ta lav Ro ad No rth Ry de NS W era , ,	100 %	n 2 002 Ju	13 72 6 5,	n 2 00 8 Ju	16 0, 00 0	( f)	150 00 0 ,	160 00 0 ,
DE XU S I nd ust ria l E sta te, Eg ert Str eet Sil ter NS W on ve rwa , ,	100 %	Ma 199 7 y	183 37 ,	De c 2 00 7	50 00 0 ,	( i)	45 20 0 ,	48 20 0 ,
23 9 - 25 1 W dp ark Ro ad Sm ithf ield NS W oo , ,	100 %	Ma 199 7 y	122 5,	De c 2 00 8	6, 20 0	(a )	6, 20 0	6, 80 0
40 Bi loe la S tre et, Vil law d, NS W oo	10 0%	Ju l 19 97	6, 88 5	De c 2 00 8	7, 00 0	( d)	7, 00 0	8, 100
114 Fa irba nk Ro ad Cla VIC ton y , ,	10 0%	Ju l 19 97	15 85 1 ,	De c 2 00 8	15 60 0 ,	(g )	15 60 0 ,	16, 20 0
30 Be llric k S tre et, Ac aci a R idg Q LD e,	10 0%	Ju n 1 99 7	13 29 1 ,	Ju n 2 00 8	22 70 0 ,	(e )	21 00 0 ,	22 70 0 ,
68 Ha sle r R d, He rds WA oa ma n,	10 0%	Ju l 19 98	9, 74 3	Ju n20 08	17 50 0 ,	( i)	14 30 0 ,	17, 50 0
Zo Ind ust ria l E II, Ep ne po ne on e	10 0%	Ju l 20 06	12 60 8 ,	De c 2 00 8	8, 98 6	( i)	8, 98 6	10, 41 7
19 de Br Sa int- Qu in F alla vie eta ent rue gn e, r	10 0%	Ju l 20 06	23 91 9 ,	De c 2 00 8	674 15 ,	( i)	15 67 4 ,	18, 38 9
21 du Ch in B lan Ch lan rue em c, am p	10 0%	Ju l 20 06	23 63 0 ,	De c 2 00 8	13 90 5 ,	( i)	13 90 5 ,	16, 91 3
32 de I'O nie Vil leju st ave nue cea ,	10 0%	Ju l 20 06	19 40 2 ,	De c 2 00 8	872 11 ,	( i)	11 87 2 ,	13, 53 3
C d 'Or Se n ( 1) RN 19 ZA e L s R d, me oa rvo	0% 10	Ju l 20 06	874 31 ,	De c 2 00 8	19 61 8 ,	( i)	19 61 8 ,	21 86 7 ,
RN 19 ZA C d e L 'Or s R d, Se n ( 2) me oa rvo	10 0%	Ju l 20 06	872 10 ,	De c 2 00 8	7, 21 7	( i)	7, 21 7	7, 92 3

DEXUS DIVERSIFIED TRUST Page 12 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Note 3. Investment properties (continued)

(a ) Pro rtie pe s	Ow rsh ip ne	Ac isit ion qu da te	Co inc lud ing st all ad dit ion	Ind de nt ep en lua tio n d ate	Ind de nt ep en lua tio	Ind de nt ep en lue	Co oli da ted ns bo ok lue	Co lida ted nso boo k v alu e
			s	va	va n nt am ou	va r	va 31 De c 2 00 8	30 Ju 20 08 ne
			\$ '00 0		\$ '00 0		\$ '00 0	\$ '00 0
Im Ho lde rbu sch 3, In du str ies tra βe Su lms tra βe , ,
Ell hof -W ein sbe en rg	100 %	De c 2 00 6	25 31 9 ,	De c 2 00 8	26 93 6 ,	( i)	26 93 6 ,	23 37 6 ,
Sc βe hof hill tra 51 Ell ers en ,	100 %	De c 2 00 6	20 97 2 ,	De c 2 00 8	22 58 6 ,	( i)	22 58 6 ,	19, 53 7
Sc hill tra βe 42 42 Ba hn hof str aβ e 4 4, 50 Ell hof ers a, en , ,	100 %	De c 2 00 6	168 13 ,	De c 2 00 8	974 11 ,	( i)	11 97 4 ,	12, 156
Ge t 1 8 F Im rbe bie ried ald we ge ew	% 100	De c 2 00 6	8, 49 2	De c 2 00 8	8, 03 0	( i)	8, 03 0	6, 61 1
Im Ste inb h 4 6, Kn etz ruc ga u ,	100 %	De c 2 00 6	654 16 ,	De c 2 00 8	17 99 1 ,	( i)	17 99 1 ,	17, 52 0
Ca rl-L rku Str aβ e 3 Wi nke lsw 182 - 1 84 La nfe ld - 5 eve s - eg nge , ,	% 100	De c 2 00 6	16 71 8 ,	De c 2 00 8	17 36 1 ,	( i)	17 36 1 ,	15, 05 9
raβ Sc hne ide rst e 8 2, La nfe ld 3 nge	100 %	De c 2 00 6	9, 59 3	De c 2 00 8	144 10 ,	( i)	10 144 ,	8, 80 9
Ub de r D ing els tel le, La ed din er nge nw ge n	100 %	c 2 00 6 De	142 12 ,	c 2 00 8 De	10 63 2 ,	( i)	10 63 2 ,	10, 72 8
βe No rds tra 1, Lo ba u	100 %	De c 2 00 6	2, 04 5	De c 2 00 8	2, 31 8	( i)	2, 31 8	1, 42 7
Fo Str aβ e 6 Un rm er na ,	100 %	De c 2 00 6	27 70 8 ,	De c 2 00 8	31 34 8 ,	( i)	31 34 8 ,	27 29 7 ,
βe Nie de she ime r S tra 24 Wo rm s ,	100 %	De c 2 00 6	6, 58 2	De c 2 00 8	7, 98 9	( i)	7, 98 9	6, 57 8
Liv ler- / K hag -/ O slo Str aβ Du isb erp oo op en en er er e, urg	100 %	De c 2 00 6	32 84 0 ,	De c 2 00 8	34 72 3 ,	( i)	34 72 3 ,	33 153 ,
aβ Bre r R ing Ha str Be rlin -W ust ark me nse e, erm ,	100 %	De c 2 00 6	17 74 7 ,	De c 2 00 8	18 07 3 ,	( i)	18 07 3 ,	17, 142
Th do rSt raβ Du ldo rf eo e, sse	100 %	De c 2 00 6	152 27 ,	De c 2 00 8	27 79 0 ,	( i)	27 79 0 ,	25 50 9 ,
So O Or 132 01 uth Av lan do ran ge en ue ,	100 %	Ju n 2 00 7	23 63 0 ,	Ju n 2 00 8	30 64 6 ,	( i)	39 47 7 ,	30 64 6 ,
85 74 Bo sto n C hu rch Ro ad Mil ton On tar io , ,	100 %	De c 2 00 7	74 99 0 ,	Ju n 2 00 8	304 70 ,	( i)	86 4 77 ,	70 304 ,
Go r P hill ip To r & G r M rie To r O ffic e C lex ve rno we ove rno acq au we om p , 1
Sy NS 1 F Pla dn W arr er ce ey , ,	50 %	De c 1 99 8	764 49 3,	De c 2 00 8	68 0, 00 0	(a )	68 0, 00 0	744 99 3 ,
45 Cl St t, Sy dn NS W are nce ree ey, 1	100 %	De c 1 99 8	22 1, 62 5	Ju n 2 00 7	26 00 0 5,	(e )	27 5, 00 0	29 0, 163
t S Sy NS 30 9 - 32 1 K tre et, dn W en ey,	50 %	De c 1 99 8	17 0, 83 9	De c 2 00 8	19 9, 25 0	( d)	199 25 0 ,	21 0, 48 3
1 M t S tre et, Sy dn NS W arg are ey,	100 %	De c 1 99 8	14 4, 65 9	De c 2 00 7	20 0, 00 0	(a )	185 00 0 ,	194 00 0 ,
ia C r S Sy NS Vic tor s 6 0 M ille tre et, No rth dn W ros ey, 1	100 %	De c 1 99 8	954 10 5,	De c 2 00 8	12 4, 80 0	( f)	124 80 0 ,	110 06 8 ,
Th e Z ith, 82 1 - 84 3 P ific Hi hw Ch ats od NS W en ac g ay wo , ,	50 %	De c 1 99 8	10 9, 97 7	Ju n 2 00 7	13 0, 00 0	(a )	120 00 0 ,	130 00 0 ,
0 S t G Wo od sid e P laz 24 s T Pe rth WA a, eo rge err ace , ,	0% 10	Ja n 2 00 1	094 24 0,	Ju n 2 00 8	44 6, 50 0	( i)	43 0, 00 0	44 6, 50 0
30 Th e B d, 30 - 3 4 H ick n R d, Sy dn NS W on so oa ey,	10 0%	Ma 20 02 y	11 7, 98 6	De c 2 00 8	17 0, 00 0	( f)	170 00 0 ,	179 03 6 ,
So Co 3 S So C uth te lex out hga te Av uth te, VI ga mp en ue ga , , 1 20 1 - 21 7 E liza bet h S tre et, dn NS W	0% 10 50 %	Au 20 00 g Au 20 00	36 5, 88 8 11 59 9	Ju n 2 00 7 Ju n 2 00 7	38 0, 00 0 15 75 0	( i)	37 2, 58 2 159 00	37 0, 00 0 164
Sy ey, T		g	9,		8,	( d)	0 ,	130 ,
Ga a C 140 - 1 80 Cit Civ AC rt, Wa lk, ic, rem ou y Au str alia Sq Co lex 264 - 2 78 Ge e S tre et, Sy dn ua re mp org ey, ,	10 0%	20 00 Au g	43 99 9 ,	n 2 00 8 Ju	60 00 0 ,	( i)	54 00 0 ,	60 00 0 ,
1 NS W	50 %	Au 20 00 g	21 0, 38 1	De c 2 00 7	31 2, 50 0	(e )	29 3, 00 0	30 3, 00 0
2 Lu mle Ce 88 Sh lan d S Au ckl d, Ne w Z lan d ntr ort tre et, y e, an ea	% 100	Se 20 05 p	94 69 0 ,	Ju n 2 00 8	12 2, 92 8	( i)	12 1, 28 8	122 92 8 ,

1 The valuation reflects 50 percent of the independent valuation amount.

2 The property was externally valued at NZ\$155 milllion at 30 June 2008. The carrying amount of the property as at 31 December 2008 has been translated at the period end spot rate.

The title to all properties is freehold, with the exception of the properties marked ** which are leasehold.

DEXUS DIVERSIFIED TRUST Page 13 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

(a ) Pro rtie pe s	Ow rsh ip ne	Ac isit ion qu da te	Co inc lud ing st all ad dit ion s	Ind de nt ep en lua tio n d ate va	Ind de nt ep en lua tio va n nt am ou	Ind de nt ep en lue va r	Co oli da ted ns bo ok lue va 31 De c 2 00 8	Co lida ted nso boo k v alu e 30 Ju 20 08 ne
			\$ '00 0		\$ '00 0		\$ '00 0	\$ '00 0
37 65 Atl ant a I nd ust ria l D rive Atl ant a ,	100 %	Se 20 04 p	-	Ju n 2 00 8	4, 57 1	(c )	-	4, 57 1
71 00 Hig hla nds Pa rkw Atl ta ay an ,	% 100	Se 20 04 p	15 31 9 ,	Ju n 2 00 8	13 40 1 ,	(c )	17 00 3 ,	13, 40 1
To Pa rk Dri Atl ant wn ve a ,	100 %	Se 20 04 p	6, 89 8	Ju n 2 00 8	934 8,	(c )	9, 96 7	8, 934
Wi llia Dr ive Atl ant ms a ,	100 %	Se 20 04 p	10 42 2 ,	n 2 00 8 Ju	10 28 5 ,	(c )	12 41 3 ,	10, 28 5
Sto Mo unt ain Atl ant ne a ,	100 %	Se 20 04 p	724 7,	Ju n 2 00 8	6, 23 3	(c )	7, 81 6	6, 23 3
MD Fo od Pa rk, Ba ltim ore	100 %	Se 20 04 p	20 57 7 ,	Ju n 2 00 8	102 24 ,	(c )	29 26 6 ,	24 102 ,
We st Nu Ba ltim rse ry, ore	100 %	Se 20 04 p	8, 33 3	Ju n 2 00 8	9, 03 8	(c )	10 81 1 ,	9, 03 8
Ca bot Te Ba ltim cns ore ,	100 %	Se 20 04 p	21 6 75 ,	Ju n 2 00 8	30 64 6 ,	(c )	5 37 38 ,	30 64 6 ,
Gu ildf 91 12 ord Ro ad Ba ltim ore ,	100 %	Se 20 04 p	8, 51 7	Ju n 2 00 8	9, 55 7	(c )	13 53 2 ,	9, 55 7
81 55 Sta ton Dr ive Ba ltim y ore ,	100 %	Se 20 04 p	384 7,	Ju n 2 00 8	9, 03 8	(c )	10 51 5 ,	9, 03 8
Pa tux ent Ra Ro ad Ba ltim nge ore ,	100 %	Se 20 04 p	12 42 1 ,	Ju n 2 00 8	13 60 9 ,	(c )	17 74 0 ,	13, 60 9
Bri sto l C rt, Ba ltim ou ore	100 %	Se 20 04 p	11 39 1 ,	Ju n 2 00 8	12 46 6 ,	(c )	14 60 7 ,	12, 46 6
NE Ba ltim Ba ltim ore ore ,	100 %	Se 20 04 p	7, 79 9	Ju n 2 00 8	9, 03 8	(c )	10 79 0 ,	9, 03 8
118 1 P ort al, 183 1 P ort al & 66 15 Tri but Ba ltim ary ore ,	100 %	Ju n 2 00 5	11 34 5 ,	Ju n 2 00 8	12 25 8 ,	(c )	14 60 7 ,	12, 25 8
10 Ke d C ircl Bo sto nw oo e, n	% 100	Se 20 04 p	11 44 2 ,	Ju n 2 00 8	10 59 6 ,	(c )	12 39 9 ,	10, 59 6
Co e P ark Ch arl ott mm erc e ,	100 %	Se 20 04 p	7, 87 2	Ju n 2 00 8	9, 24 6	(c )	11 77 8 ,	9, 24 6
99 00 Bro okf ord St Ch arl t, ott ree e	% 100	Se 20 04 p	4, 27 1	Ju n 2 00 8	4, 57 1	(c )	5, 73 0	4, 57 1
We stin ho Ch arl ott g use e ,	100 %	Se 20 04 p	21 46 4 ,	Ju n 2 00 8	25 66 0 ,	(c )	32 73 7 ,	25 66 0 ,
Air rt E xch Cin cin nat i po an ge ,	100 %	Se 20 04 p	56 9 4,	n 2 00 8 Ju	532 3,	(c )	3, 67 7	3, 532
Em ire Dri Cin cin nat i p ve ,	100 %	Se 20 04 p	6, 55 8	Ju n 2 00 8	6, 96 0	(c )	8, 09 4	6, 96 0
Inte tio l W Ci nci ti rna na ay, nna	100 %	Se 20 04 p	10 86 6 ,	Ju n 2 00 8	12 25 8 ,	(c )	14 98 9 ,	12, 25 8
Ke ntu cky Dr ive Cin cin nat i ,	100 %	Se 20 04 p	100 12 ,	Ju n 2 00 8	15 79 1 ,	(c )	17 69 6 ,	15, 79 1
Sp ira l D rive Cin cin i nat ,	10 0%	Se 20 04 p	6, 28 1	Ju n 2 00 8	6, 23 3	(c )	60 6 7,	6, 23 3
Tu rfw Ro ad Cin cin nat i ay ,	10 0%	Se 20 04 p	5, 68 7	Ju n 2 00 8	5, 29 8	(c )	5, 88 2	5, 29 8
124 Co Cin cin i nat mm erc e,	10 0%	Se 20 04 p	2, 45 3	Ju n 2 00 8	2, 59 7	(c )	3, 195	2, 59 7
Ke d R d, Cin cin nat i nw oo oa	10 0%	Se 20 04 p	20 02 8 ,	Ju n 2 00 8	21 81 6 ,	(c )	23 55 7 ,	21 81 6 ,
La ke Fo t D rive Cin cin i nat res ,	10 0%	Se 20 04 p	12 76 2 ,	Ju n 2 00 8	14 64 8 ,	(c )	16 69 4 ,	14, 64 8
Cin Wo rld Pa rk, cin nat i	% 100	Se 20 04 p	192 13 ,	Ju n 2 00 8	13 24 5 ,	(c )	16 09 4 ,	13, 24 5
Eq uity /W est be lt/D ivid d, Co lum bus en	10 0%	Se 20 04 p	39 36 5 ,	Ju n 2 00 8	554 41 ,	(c )	47 23 6 ,	41 554 ,
l S Co 27 00 Inte tio tre et, lum bus rna na	0% 10	Se 20 04 p	4, 64 8	Ju n 2 00 8	194 5,	(c )	5, 82 7	5, 194
38 00 Tw in C ks Dri Co lum bus ree ve ,	10 0%	Se 20 04 p	4, 94 5	Ju n 2 00 8	714 5,	(c )	7, 114	5, 714
SE Co lum bus Co lum bus ,	10 0%	Se 20 04 p	14 24 7 ,	Ju n 2 00 8	155 12 ,	(c )	13 46 8 ,	12, 155
Arl ing ton Da llas ,	10 0%	Se 20 04 p	9, 03 8	Ju n 2 00 8	9, 35 0	(c )	11 35 3 ,	9, 35 0
190 0 D ip lom Dri Da llas at ve ,	10 0%	Se 20 04 p	4, 76 7	Ju n 2 00 8	4, 25 9	(c )	4, 68 8	4, 25 9
20 55 Dip lom at Dri Da llas ve ,	10 0%	Se 20 04 p	3, 78 3	Ju n 2 00 8	3, 01 3	(c )	4, 36 9	3, 01 3

DEXUS DIVERSIFIED TRUST Page 14 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

(a ) Pro rtie pe s	Ow rsh ip ne	Ac isit ion qu da te	Co st inc lud ing dit ion all ad s	Ind de nt ep en tio lua n d ate va	Ind de nt ep en tio lua va n nt am ou	Ind de nt ep en lue va r	Co oli da ted ns bo ok lue va 31 De c 2 00 8	Co lida ted nso boo k v alu e 30 Ju 20 08 ne
			\$ '00 0		\$ '00 0		\$ '00 0	\$ '00 0
14 13 Bra dle La Da llas ne y ,	% 100	Se 20 04 p	3, 23 5	Ju n 2 00 8	2, 80 5	(c )	3, 36 3	2, 80 5
No rth La ke, Da llas	100 %	Se 20 04 p	185 10 ,	Ju n 2 00 8	12 46 6 ,	(c )	15 43 0 ,	12, 46 6
5 A irlin e D rive Da llas 55 ,	% 100	Se 20 04 p	6, 83 3	Ju n 2 00 8	6, 64 9	(c )	7, 41 2	6, 64 9
45 5 A irlin e D rive Da llas ,	100 %	Se 20 04 p	3, 23 7	Ju n 2 00 8	532 3,	(c )	4, 45 3	3, 532
Hil lgu ard Da llas ,	% 100	Se 20 04 p	9, 42 7	Ju n 2 00 8	10 07 7 ,	(c )	10 80 4 ,	10, 07 7
Cr 110 11 Re est Dr ive Da llas ge ncy ,	100 %	Se 20 04 p	7, 55 6	Ju n 2 00 8	8, 20 7	(c )	7, 40 4	8, 20 7
Ea st C olli nd Da llas ,	100 %	Se 20 04 p	3, 76 6	Ju n 2 00 8	3, 74 0	(c )	4, 197	3, 74 0
/ 1 0 S 36 01 Ea st Pla 00 hilo h, Da llas no	100 %	Se 20 04 p	13 70 5 ,	Ju n 2 00 8	18 43 9 ,	(c )	19 09 6 ,	18, 43 9
Ea st Pla Pa rkw Da llas no ay,	100 %	Se 20 04 p	22 20 3 ,	Ju n 2 00 8	25 45 2 ,	(c )	29 38 1 ,	25 45 2 ,
82 0 - 86 0 A F, Da llas ve nue	100 %	Se 20 04 p	7, 48 6	Ju n 2 00 8	6, 23 3	(c )	7, 73 6	6, 23 3
10t h S tre et, Da llas	100 %	Se 20 04 p	112 10 ,	Ju n 2 00 8	116 11 ,	(c )	14 04 5 ,	11, 116
Ca ital Av Da llas p en ue ,	100 %	Se 20 04 p	604 6,	Ju n 2 00 8	6, 54 5	(c )	7, 01 6	6, 54 5
CT C @ Va lwo od Da llas ,	100 %	Se 20 04 p	3, 55 9	Ju n 2 00 8	155 4,	(c )	4, 76 0	4, 155
Bra ckb ill, Ha rris bu rg	100 %	Se 20 04 p	314 23 ,	Ju n 2 00 8	21 62 3 ,	(c )	25 21 2 ,	21 62 3 ,
Me cha nic sb Ha rris bu urg rg ,	100 %	Se 20 04 p	19 09 2 ,	Ju n 2 00 8	19 94 6 ,	(c )	25 70 7 ,	19, 94 6
18 1 F ulli Mil l R d, Ha rris bu ng oa rg	% 100	Se 20 04 p	9, 40 1	Ju n 2 00 8	103 10 ,	(c )	13 28 0 ,	10, 103
Gle nda le, Los An les ge	100 %	Se 20 04 p	53 67 7 ,	Ju n 2 00 8	73 75 9 ,	(c )	85 09 0 ,	73 75 9 ,
144 89 Ind Cir lce Los An les ust ry ge ,	% 100	Se 20 04 p	7, 52 3	Ju n 2 00 8	12 52 3 ,	(c )	15 03 6 ,	12, 52 3
145 55 Alo nd / 6 53 0 A ltur Los An les ra a, ge	100 %	Se 20 04 p	18 37 5 ,	Ju n 2 00 8	24 41 3 ,	(c )	29 80 7 ,	24 41 3 ,
Sa n F do Va lley Los An les ern an ge ,	100 %	Se 20 04 p	15 39 8 ,	n 2 00 8 Ju	25 97 1 ,	(c )	29 49 6 ,	25 97 1 ,
Me his In du str ial, M his mp em p	100 %	Se 20 04 p	9, 74 1	Ju n 2 00 8	6, 44 1	(c )	7, 83 1	6, 44 1
29 50 Lex ing ton Av S, Min lis en ue nea po	100 %	Se 20 04 p	9, 1 55	Ju n 2 00 8	9, 36 0	(c )	10 80 4 ,	9, 36 0
Mo und s V iew Min lis nea po ,	10 0%	Se 20 04 p	23 02 5 ,	Ju n 2 00 8	024 22 ,	(c )	22 89 3 ,	22 024 ,
61 05 Tre n L Min lis nto an e, nea po	10 0%	Se 20 04 p	8, 86 6	Ju n 2 00 8	8, 20 7	(c )	9, 72 9	8, 20 7
85 75 Mo ntic ello La Min lis ne nea po ,	10 0%	Se 20 04 p	1, 79 2	Ju n 2 00 8	182 2,	(c )	2, 61 3	2, 182
74 01 Ca hill Ro ad Min lis nea po ,	10 0%	Se 20 04 p	3, 56 8	Ju n 2 00 8	3, 27 2	(c )	3, 94 8	3, 27 2
CT C @ Du lles No rth Vi inia ern rg ,	10 0%	Se 20 04 p	25 74 0 ,	Ju n 2 00 8	30 64 6 ,	(c )	30 29 0 ,	30 64 6 ,
Ale nd ria No rth Vi inia xa ern rg ,	100 %	Se 20 04 p	48 89 0 ,	Ju n 2 00 8	153 54 ,	(c )	67 92 2 ,	54 153 ,
No kes Bo ule rd, No rth Vir inia va en g	0% 10	Se 20 04 p	156 26 ,	Ju n 2 00 8	48 20 3 ,	(c )	78 23 3 ,	48 20 3 ,
Gu ildf ord No rth Vir inia en g ,	10 0%	Se 20 04 p	18 25 8 ,	Ju n 2 00 8	22 23 1 ,	(c )	29 157 ,	22 23 1 ,
Be ad e T ele No rth Vi inia au me co m, ern rg	0% 10	Se 20 04 p	33 77 9 ,	Ju n 2 00 8	45 71 0 ,	(c )	51 63 9 ,	45 71 0 ,
Or lan do Ce ntr al Pa rk, Or lan do	10 0%	Se 20 04 p	62 70 5 ,	Ju n 2 00 8	76 25 2 ,	(c )	91 51 3 ,	76 25 2 ,
Or 75 00 Ex cha Dr ive lan do nge ,	0% 10	Se 20 04 p	5, 66 2	Ju n 2 00 8	7, 37 6	(c )	8, 66 8	7, 37 6
105 - 1 07 So uth 41 st Av Ph nix en ue oe ,	10 0%	Se 20 04 p	14 77 9 ,	Ju n 2 00 8	173 22 ,	(c )	23 60 0 ,	22 173 ,
142 9 - 14 39 So uth 40 th Av Ph nix en ue oe ,	10 0%	Se 20 04 p	674 10 ,	Ju n 2 00 8	15 06 3 ,	(c )	16 98 8 ,	15, 06 3

DEXUS DIVERSIFIED TRUST Page 15 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

(a ) Pro rtie pe s	Ow rsh ip ne	Ac isit ion qu da te	Co inc lud ing st all ad dit ion s	Ind de nt ep en lua tio n d ate va	Ind de nt ep en lua tio va n nt am ou	Ind de nt ep en lue va r	Co oli da ted ns bo ok lue va 31 De c 2 00 8	Co lida ted nso boo k v alu e 30 Ju 20 08 ne
			\$ '00 0		\$ '00 0		\$ '00 0	\$ '00 0
103 97 We st V Bu St t, Ph nix an ren ree oe	100 %	Se 20 04 p	8, 86 1	Ju n 2 00 8	15 37 5 ,	(c )	16 49 1 ,	15, 37 5
844 44 th Av Ph nix en ue oe ,	% 100	Se 20 04 p	6, 72 9	Ju n 2 00 8	8, 41 5	(c )	9, 49 1	8, 41 5
22 0 S out h 9 th Str eet Ph nix oe ,	100 %	Se 20 04 p	7, 32 5	Ju n 2 00 8	10 49 2 ,	(c )	12 01 6 ,	10, 49 2
43 1 N ort h 4 7th Av Ph nix en ue oe ,	100 %	Se 20 04 p	6, 21 7	n 2 00 8 Ju	9, 24 6	(c )	10 32 1 ,	9, 24 6
60 1 S out h 5 5th Av Ph nix en ue oe ,	100 %	Se 20 04 p	4, 77 2	Ju n 2 00 8	5, 92 1	(c )	6, 58 9	5, 92 1
100 0 S out h P ries t D rive Ph nix oe ,	100 %	Se 20 04 p	174 5,	Ju n 2 00 8	6, 23 3	(c )	6, 77 0	6, 23 3
112 0 - 11 50 We st A lam ed a D rive Ph nix oe ,	100 %	Se 20 04 p	8, 44 5	Ju n 2 00 8	10 38 9 ,	(c )	11 67 7 ,	10, 38 9
185 8 E ast En to Dri Ph nix can ve oe ,	100 %	Se 20 04 p	4, 47 5	Ju n 2 00 8	6, 64 9	(c )	6, 79 1	6, 64 9
38 02 - 3 92 2 E ast Un ive rsit Dri Ph nix y ve oe ,	100 %	Se 20 04 p	10 30 5 ,	Ju n 2 00 8	11 94 7 ,	(c )	11 28 1 ,	11, 94 7
Ch ino Riv ide ers ,	100 %	Se 20 04 p	6, 57 7	Ju n 2 00 8	9, 66 1	(c )	11 24 4 ,	9, 66 1
Mir a L Riv ide om a, ers	100 %	Se 20 04 p	10 84 3 ,	Ju n 2 00 8	20 77 7 ,	(c )	22 55 3 ,	20 77 7 ,
On tar io, Riv ide ers	100 %	Se 20 04 p	30 08 2 ,	Ju n 2 00 8	384 50 ,	(c )	49 94 2 ,	50 384 ,
41 90 Ea st S a A Str Riv ide ant t, na ee ers	% 100	Se 20 04 p	5, 06 1	Ju n 2 00 8	9, 35 0	(c )	9, 44 0	9, 35 0
Ra nch o C Riv ide uca mo nga ers ,	100 %	Se 20 04 p	22 46 6 ,	Ju n 2 00 8	37 91 8 ,	(c )	37 05 9 ,	37 91 8 ,
120 00 Je Co Riv ide urt rse ers y ,	% 100	Se 20 04 p	4, 49 2	Ju n 2 00 8	7, 68 8	(c )	6, 76 3	7, 68 8
Air Ro ad Sa n D ieg wa y o ,	100 %	Se 20 04 p	9, 75 0	Ju n 2 00 8	10 38 9 ,	(c )	12 73 1 ,	10, 38 9
582 3 N Dr ive Sa n D ieg ton ew o ,	100 %	Se 20 04 p	17 06 5 ,	Ju n 2 00 8	23 99 8 ,	(c )	27 71 4 ,	23 99 8 ,
Oa Sa 22 10 k R idg e W n D ieg ay, o	100 %	Se 20 04 p	173 5,	Ju n 2 00 8	732 6,	(c )	7, 74 4	6, 732
Ke nt Str t, Se att le ee	100 %	Se 20 04 p	29 54 5 ,	Ju n 2 00 8	36 36 0 ,	(c )	39 55 0 ,	36 36 0 ,
So Se 26 50 7 7 9th Av uth att le en ue ,	100 %	Se 20 04 p	2, 77 5	Ju n 2 00 8	3, 74 0	(c )	3, 86 1	3, 74 0
80 05 So uth 26 6th St t, Se att le ree	100 %	Se 20 04 p	314 7,	Ju n 2 00 8	9, 03 8	(c )	9, 64 2	9, 03 8
So We st Pa lm Be ach uth Fl ori da ,	100 %	Se 20 04 p	22 05 9 ,	Ju n 2 00 8	21 29 6 ,	(c )	23 81 6 ,	21 29 6 ,
Ca lve rt / M 's, No rth Vi inia urr ay ern rg	10 0%	Se 20 04 p	5, 51 2	Ju n 2 00 8	5, 09 0	(c )	5, 18 1	5, 09 0
Tu ike Di str ibu tio n C ent rnp er	10 0%	Se 20 04 p	22 92 1 ,	Ju n 2 00 8	29 91 9 ,	(c )	36 77 1 ,	29 91 9 ,
77 00 68 th Av Bro okl Pa rk en ue yn ,	10 0%	No v 2 00 5	5, 79 5	Ju n 2 00 8	4, 46 7	(c )	4, 96 5	4, 46 7
h S 75 00 We st 78t tre et, Blo ing ton om	0% 10	No v 2 00 5	5, 53 1	Ju n 2 00 8	5, 40 2	(c )	5, 95 8	5, 40 2
128 5 & 13 01 Co rat e C ent Dri 123 0 & 12 70 Ea rpo er ve ga n ,
Ind ust ria l R d, Ea oa ga n	100 %	No v 2 00 5	19 80 7 ,	Ju n 2 00 8	102 16 ,	(c )	19 63 1 ,	16, 102
85 0 E De n A 126 0 N El lis Str t, 37 1 M r R d vo ve nue ee eye oa ,
Be nvi lle, Ch ica ( O'H ) nse go are	100 %	De c 2 00 7	32 35 3 ,	Ju n 2 00 8	30 64 6 ,	(c )	34 64 1 ,	30 64 6 ,
372 2 R ed lan ds Av Pe rris Riv ide Co unt en ue ers y , ,	10 0%	Ja n 2 00 8	13 4, 08 5	Ju n 2 00 8	934 13 1,	(c )	5 18 1, 36	13 1, 934
81 51 & 8 16 1 In ter cha Pa rkw Sa n A nto nio nge ay ,	10 0%	Ju l 20 07	17 02 2 ,	Ju n 2 00 8	102 16 ,	(c )	22 26 4 ,	16, 102
Co I a nd II, 54 11 Inte 10 Ea nd 122 8 C rsto rst ate st a rne ne orn erw ay Bo ule rde Sa n A nio nto va ,	100 %	20 07 Au g	16 49 6 ,	n 2 00 8 Ju	13 92 0 ,	(c )	17 45 9 ,	13, 92 0

Note 3. Investment properties (continued)

(a ) Pro rtie pe s	Ow rsh ip ne	Ac isit ion qu da te	Co inc lud ing st all ad dit ion s	Ind de nt ep en lua tio n d ate va	Ind de nt ep en lua tio va n nt am ou	Ind de nt ep en lue va r	Co oli da ted ns bo ok lue 31 va De c 2 00 8	Co lida ted nso boo k v alu e 30 Ju 20 08 ne
			\$ '00 0		\$ '00 0		\$ '00 0	\$ '00 0
302 d 4 02 Ta Ro ad Po rt o f S An ton io an ym an an ,	100 %	Oc t 2 00 7	594 17 ,	Ju n 2 00 8	19 84 2 ,	(c )	27 33 9 ,	19, 84 2
180 3 G dst d A Ala Do Sa n A nio nto ran an ve nue mo wn s, ,	100 %	Au 20 07 g	193 11 , 28 78 7 ,	Ju n 2 00 8	116 11 , 30 95 8 ,	(c )	12 48 0 ,	11, 115 30 95 7 ,
To tal in ies stm t p ert ve en rop			6, 44 6, 60 7		8, 147 09 6 ,		8, 33 4, 93 0	8, 182 29 5 ,

(a) Colliers International (b) Landmark White (c) Cushman & Wakefield (d) Jones Lang LaSalle (e) Knight Frank Valuations (f) FPD Savills (g) M3 Property (h) Weiser Realty Advisors (USA) (i) CB Richard Ellis

Valuation basis

The basis of valuation of investment properties is fair value, being the amounts for which the assets could be exchanged between knowledgeable willing parties in an arm's length transaction, based on current prices in an active market for similar properties in the same location and condition and subject to similar leases. Properties independently valued in the last 12 months were based on independent assessments by a member of the Australian Property Institute, the New Zealand Institute of Valuers, the Appraisal Institute in the United States of America, the French Real Estate Valuation Institution or the Society of Property Researchers, Germany or the Appraisal Institute in Canada.

Disposals

3765 Atlanta Industrial Drive, Atlanta

On 30 October 2008, the Atlanta Industrial property located on 3765 Atlanta Industrial Drive, Atlanta, GA was disposed of for \$6.8 million (US\$4.7 million).

Sydney CBD Floor Space

On 1 October 2008, DDF sold 3,593 square meters of its Sydney CBD Floor Space (359 square meters remaining) for \$1.4million.

DEXUS DIVERSIFIED TRUST Page 17 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Note 3. Investment properties (continued)

(b) Reconciliation

	De 3 1 2 0 0 8 c	3 0 Ju 2 0 0 8 n
	\$ '0 0 0	\$ '0 0 0
Ca f ing t a t t he be inn ing t he io d rry am ou n g o p er	5 8, 1 8 2, 2 9	8, 5 8 5, 7 0 3
A d d i ion t s	3 5, 2 1 1	1 1 2, 9 2 3
Ac is i t ion q s u	-	3 1 7, 7 6 5
fer fro / ( ) Tra to ty, lan t a d e ip t ns m p rop er p n q u me n	3 3, 1 1 7	( ) 2, 3 7 6
Le inc ive t as e en s	3 1, 8 0 0	4 9, 9 6 2
Am t isa t ion f lea inc t ive or o se en s	( ) 2 2, 6 1 8	( 4 2, 0 3 4 )
Re t s tra ig h t l in ing n	2, 1 1 2	3, 5 3 6
D isp ls os a	( 7, 6 4 8 )	( 7 3 7, 4 5 7 )
1 fer Tra to i ty te d inv tm t ns eq u ac co un es en	-	( 8 ) 5 4, 4 7
Ne t ( los ) /g in fro fa ir v lue d j tm ts s a m a a us en	( 7 0 2, 1 7 2 )	1 8 4, 4 4 4
Fo ig ha in / ( los ) for ig tra la t ion re n e xc ng e g a s on e n c urr en cy ns	7 8 2, 8 3 3	( 2 3 5, 6 9 3 )
Ca ing he d o f t he io d nt t t rry am ou a en p er	8, 3 3 4, 9 3 0	8, 1 8 2, 2 9 5

1 On 15 October 2007, the Bent Street Trust was transferred to equity accounted investments due to sale of 31.8 percent to DEXUS Wholesale Property Fund (DWPF)

DEXUS DIVERSIFIED TRUST Page 18 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Note 4. Property, plant and equipment

(a) Property plant and equipment

31 December 2008

	Construction	freehold	IT and
	in progress	buildings	office	Total
	\$'000	\$'000	\$'000	\$'000
Opening balance as at 1 July 2008	220,062	217,470	6,101	443,633
Additions	87,584	14,749	948	103,281
Foreign exchange differences on foreign currency translation	42,428	-	-	42,428
Depreciation charge	-	(1,129)	(1,028)	(2,157)
Impairment	(47,550)	(23,236)		(70,786)
Transfer (to)/from investment properties	(33,117)	-	-	(33,117)
Closing balance as at 31 December 2008	269,407	207,854	6,021	483,282
Cost	316,957	237,941	7,634	562,532
Accumulated depreciation	-	(6,851)	(1,613)	(8,464)
Impairment	(47,550)	(23,236)	-	(70,786)
Net book value as at 31 December 2008	269,407	207,854	6,021	483,282

30 June 2008		Land and
	Construction	freehold	IT and
	in progress	buildings	office	Total
	\$'000	\$'000	\$'000	\$'000
Opening balance as at 1 July 2007	181,919	132,102	-	314,021
Additions	141,436	43,177	6,686	191,299
Foreign exchange differences on foreign currency translation	(9,227)	-	-	(9,227)
Depreciation charge	-	(2,211)	(585)	(2,796)
Disposal of interest	(49,222)	(2,818)	-	(52,040)
Transfer (to)/from investment properties	(44,844)	47,220	-	2,376
Closing balance as at 30 June 2008	220,062	217,470	6,101	443,633
Cost	220,062	223,192	6,686	449,940
Accumulated depreciation	-	(5,722)	(585)	(6,307)
Net book value as at 30 June 2008	220,062	217,470	6,101	443,633

(b) Non-current assets pledged as security

Refer to note 7 for information on non-current assets pledged as security by the parent entity and its controlled entities.

Land and

DEXUS DIVERSIFIED TRUST Page 19 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

(c) Impairment

During the period, DXS carried out a review of the recoverable amount of its development properties resulting in the recognition of an impairment loss of \$70.8 million that has been recognised in the Income Statement.

The total impairment comprises \$13.2 million for Wicks Road; \$10 million for Greystanes; \$20.9 million for Atlantic Corporate Park and \$26.7 million for Summit Oaks.

Note 5. Investments accounted for using the equity method

Investments are accounted for in the consolidated Financial Statements using the equity method of accounting.

Information relating to these entities is set out below.

Name of entity	Principal activity	Ownership interest 31 Dec 2008	Ownership interest 30 Jun 2008	31 Dec 2008	30 Jun 2008
		%	%	\$'000	\$'000
Bent Street Trust 1	Commercial property investment	68.2	68.2	130,334	111,946
Total				130,334	111,946

Movements in carrying amounts of investments accounted for using the equity method

31 Dec 2008	30 Jun 2008
\$'000	\$'000
111,946	270,155
18,361	67,070
-	54,478
27	2,467
-	(12,587)
-	(18,054)
-	(210,768)
-	(40,815)
130,334	111,946

1 On 5 February 2009 Cbus Property acquired a one-third interest in the Bent Street Trust from DOT Commercial Trust. (Refer note 11)

2 On 15 October 2007, the Bent Street Trust was transferred from investment properties due to the sale of 31.8 percent to DWPF.

DEXUS DIVERSIFIED TRUST Page 20 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Note 6. Intangible assets

	31 Dec 2008 \$'000	30 Jun 2008 \$'000
Management rights1
Opening balance as at 1 July 2008	252,176	-
Additions	-	252,382
Amortisation charge	(283)	(206)
Impairment	(20,893)	-
Closing balance as at 31 December 2008	231,000	252,176
Cost	252,382	252,382
Accumulated amortisation	(489)	(206)
Accumulated impairment	(20,893)	-
Total management rights	231,000	252,176
Goodwill
Opening balance as at 1 July 2008	2,937	-
Additions	-	2,998
Impairment	(86)	(61)
Closing balance as at 31 December 2008	2,851	2,937
Cost	2,998	2,998
Accumulated impairment	(147)	(61)
Total goodwill	2,851	2,937
Total intangibles	233,851	255,113

Management rights represent the asset management rights owned by DXH which entitle it to management fee revenue from both finite life trusts (\$9,506,906) and infinite life trusts (\$221,493,094). Those rights that are deemed to have a finite useful life, are measured at cost and amortised using the straight line method over their estimated useful lives.

Impairment of Management Rights

1

During the period, DXS carried out a review of the recoverable amount of its intangible assets resulting in the recognition in equity of an impairment loss of \$20.9 million in relation to management rights.

The value in use has been determined using management forecasts in a 5 year discounted cash flow model. Forecasts were based on projected returns of the business in light of current market conditions. Funds under management has been assumed to decline in FY09 reflecting net asset devaluations evident within the portfolio. The performance in year 5 has been used as a terminal value. The cash flows have been discounted at 8.8%.

DEXUS DIVERSIFIED TRUST Page 21 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Note 7. Interest bearing liabilities

	Notes	31 Dec 2008 \$'000	30 Jun 2008 \$'000
Current
Secured
Commercial mortgage backed securities	(a)	500,000	500,000
Bank loans	(d)	104,803	79,208
Total secured		604,803	579,208
Deferred borrowing costs		(1,058)	(3,077)
Total current liabilities - interest bearing liabilities		603,745	576,131
Non-current
Secured
Bank loans	(d), (e)	327,095	235,725
Total secured		327,095	235,725
Unsecured
US senior notes		577,368	415,541
Bank loans	(b), (c)	1,496,425	1,328,060
Medium term notes		457,538	455,425
Preference shares	(g)	134	96
Total unsecured		2,531,465	2,199,122
Deferred borrowing costs		(7,002)	(4,059)
Total non-current liabilities - interest bearing liabilities		2,851,558	2,430,788
Total interest bearing liabilties		3,455,303	3,006,919

DEXUS DIVERSIFIED TRUST Page 22 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Note 7. Interest bearing liabilities (continued)

Financing arrangements

						31 Dec 2008
		Available			\$'000	\$'000
Type of Facility	Note	Currency	Security	Maturity date	Utilised	Facility Limit
Commercial mortgage backed securities	(a)	AUD	Secured	Apr-09	500,000	500,000
US senior notes		USD	Unsecured	Feb-11 to Mar-17	577,368	577,368
Medium term notes		AUD	Unsecured	Feb-10 to Feb-11	450,000	450,000
		USD	Unsecured	Sep-10	7,538	7,538
Multi-option revolving credit facilities	(b)	Multi currency Unsecured		Dec-10 to Dec-13	966,589	1,355,710
Syndicated revolving credit facility	(c)	Multi currency Unsecured		Mar-10 to Sep 10	529,836	603,118
Bank debt - secured	(d)	USD	Secured	Mar-09 to Jan-15	107,129	107,129
	(e)	USD	Secured	Sep-11	324,769	324,769
	(f)	AUD	Secured	Jul-11	-	250,000
Total					3,463,229	4,175,632
Bank guarantee utilised					8,722
Unused at balance date					703,681

DDF's unsecured borrowing facilities and notes are supported by DXS' guarantee arrangements, and have negative pledge provisions which limit the amount and type of encumbrances that the Trust can have over its assets and ensures that all senior unsecured debt ranks pari-pasu.

The current debt facilities will be refinanced as at / or prior to their maturity.

(a) Commercial mortgage backed securities

The commercial mortgage backed securities (CMBS) are secured by mortgages over seven investment properties of DOT with a total value of \$1,984.3 million as at 31 December 2008.

The CMBS will be re-financed through two secured bank facilities for \$250 million each. The facilities will be secured over four investment properties of DOT and one investment property of DDF with a total value of \$1,635.8 million as at 31 December 2008. The facilities have an average maturity of May 2012.

(b) Multi-option revolving credit facilities

This includes 12 facilities maturing between December 2010 and December 2013 with a weighted average maturity of July 2012. The total facility limit comprises US\$120 million (A\$173.2 million) and A\$1,182.5 million. Of the total facility limit, A\$4.3 million and US\$3.1 million (A\$4.4 million) are utilised as bank guarantees for developments.

(c) Syndicated revolving credit facility

Consists of a \$300 million facility and a US\$210 million (A\$303.1 million) facility, maturing in March 2010 and September 2010 respectively.

(d) Bank loans - secured

The facilities include a total of US\$74.2 million (A\$107.1 million) of secured bank debt facilities that amortise through monthly principal and interest payments with a weighted average maturity date of March 2009. These facilities are secured by mortgages over investment properties totaling US\$175.3 million (A\$253.0 million) as at 31 December 2008.

In January 2009 US\$72.0 million was re-financed with a US\$90 million (A\$129.9 million) interest only secured bank debt facility. The facility is secured over by mortgages over investment properties totaling US\$163.3 million (A\$235.7 million) as at 31 December 2008.

(e) Bank loans - secured

A US\$225.0 million (A\$324.8 million) secured interest only bank loan maturing in September 2011 (assuming a two year extension option is executed). The current intention is to exercise the two year extension option, accordingly the facility has been classified as non-current. This facility is secured by mortgages over investment properties totaling US\$464.7 million (A\$670.8 million) as at 31 December 2008.

DEXUS DIVERSIFIED TRUST Page 23 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Note 7. Interest bearing liabilities (continued)

(f) Bank loans – secured

At balance date, a \$250.0 million secured facility was committed. The facility has a maturity date of July 2011 and will be secured over investment properties to the value of no more than A\$625 million to be finalised prior to first utilisation.

(g) Preferred Shares

US REIT has issued US\$92,550 (A\$133,588) of preferred shares as part of the requirement to be classified as a Real Estate Investment Trust (REIT) under US tax legislation. These preferred shares will remain on issue until such time that the Board decides that it is no longer in the company's interest to qualify as a REIT.

Note 8. Contributed equity

	31 Dec 2008 \$'000	30 Jun 2008 \$'000
(a) Contributed equity of equity holders of the parent
Opening balance at the beginning of the period	1,297,831	1,151,526
Issue of units	109,661	-
Distributions reinvested	32,581	146,305
Cost of issuing equity	(2,853)	-
Closing balance at the end of the period	1,437,220	1,297,831
(b) Contributed equity of equity holders of other stapled entities
Opening balance at the beginning of the period	2,280,052	2,182,833
Issue of units	191,956
Distributions reinvested	25,506	97,373
Cost of issuing equity	(4,997)	(154)
Closing balance at the end of the period	2,492,517	2,280,052
	31 Dec 2008	30 Jun 2008
	No. of securities	No. of securities
(c) Number of securities on issue
Opening balance at the beginning of the period	3,040,019,487	2,894,600,006
Issue of units	391,705,664	-
Distributions reinvested	45,087,887	145,419,481
Closing balance at the end of the period	3,476,813,038	3,040,019,487

Terms and conditions

Each stapled security ranks equally with all other stapled securities for the purposes of distributions and on termination of the Trust. Each stapled security entitles the holder to one vote, either in person or by proxy, at a meeting of each of the entities within DXS.

Distribution reinvestment plan

Under the Distribution Reinvestment Plan (DRP), stapled security holders may elect to have all or part of their distribution entitlements satisfied by the issue of new stapled securities, rather than being paid in cash.

On 29 August 2008, 45,087,887 units were issued at a unit price of \$ 1.2883 in relation to the June 2008 distribution period.

DEXUS DIVERSIFIED TRUST Page 24 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Note 8. Contributed equity (continued)

Approval of issues of Stapled Securities to an underwriter in connection with issues under a Distribution Reinvestment Plan

At the Extraordinary General Meeting held on 6 February 2009 for DXS, being DXFM, as responsible entity for DDF, DIT, DOT and DXO, security holders resolved to authorise DXFM, as responsible entity, to issue stapled securities, each comprising a unit in each of the above mentioned trusts (Stapled Securities), to an underwriter or persons procured by an underwriter within a period of 24 months from the date of the meeting in connection with any issue of Stapled Securities under the DXS distribution reinvestment plan.

Such an issue will not be counted for the purposes of the calculation of the Trust's annual placement limit of 15% under the ASX Listing Rules.

Note 9. Distributions paid and payable

	31 Dec 2008 \$'000	31 Dec 2007 \$'000
(a) Distribution to stapled security holders
31 December 2008 (payable 27 February 2009) 1	132,119	172,992
	132,119	172,992
(b) Distribution to other minority interests
DEXUS Industrial Holdings, LLC (paid)	-	421
DEXUS RENTS Trust (paid 16 October 2008)	4,651	3,978
DEXUS RENTS Trust (payable 16 January 2009)	4,243	4,202
	8,894	8,601
Total distributions	141,013	181,593
	31 Dec 2008 Cents per security	31 Dec 2007 Cents per security
(c) Distribution rate
31 December 2008 (payable 27 February 2009) 1	3.80	5.90
Total	3.80	5.90

(d) Franked dividends

The franked portions of the final dividend recommended for the year ended 30 June 2009 will be franked out of existing franking credits or out of franking credits arising from the payment of income tax in the year ended 30 June 2009.

¹ The current period distributions represent 70% of FFO (refer Directors' Report page 1) and is in accordance with the new distribution policy announced at the Annual General Meeting on 29 October 2008 and is based on the number of units on issue at 31 December 2008.

DEXUS DIVERSIFIED TRUST Page 25 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

	31 Dec 2008	31 Dec 2007
	\$'000	\$'000
Franking credits
Opening balance at the beginning of the period	14,139	3,512
Franking credits arising during the period on payment of tax at 30 percent	5,976	2,021
Franking credits arising from receipt of dividends	-	1,393
Franking debits arising from payment of dividends	-	(2,390)
Closing balance at the end of the period	20,115	4,536

Note 10. Contingent liabilities

Details and estimates of maximum amounts of contingent liabilities are as follows:

	31 Dec 2008	30 Jun 2008
	\$'000	\$'000
Bank guarantees in respect of variations and other financial risks
associated with the development of:
60 Miller Street, North Sydney, NSW	496	496
Atlantic Corporate Park, Sterling, Virginia, USA	2,217	1,596
The Titan Industrial Portfolio	985	709
Bligh Street, Sydney, NSW 1	3,820	3,820
Beaumeade, Ashburn, Northern Virginia, USA	1,204	-
Total contingent liabilities	8,722	6,621

1 Bank guarantee held in relation to an equity accounted investment. (Refer note 5)

The Trust together with DIT, DOT and DXO is also a guarantor of a A\$300.0 million and US\$210.0 million syndicated bank debt facility and a total of A\$1,182.5 million and US\$120.0 million (A\$173.2 million) of bank bi-lateral facilities, a total of A\$450.0 million of medium term notes and a total of US\$400.0 million (A\$577.4 million) of privately placed notes, which have all been negotiated to finance the Trust and other entities within DXS. The guarantees have been given in support of debt outstanding and drawn against these facilities.

The guarantees are issued in respect of the Trust and do not constitute an additional liability to those already existing in interest bearing liabilities on the Balance Sheet.

The Directors of the Responsible Entity are not aware of any other contingent liabilities in relation to the Trust, other than those disclosed in the Financial Statements, which should be brought to the attention of security holders as at the date of completion of this report.

Note 11. Events occurring after reporting date

On 5 February 2009 Cbus Property acquired a one-third interest in the Bent Street Trust from DOT Commercial Trust for consideration equivalent to one-third of the development costs incurred to date. Cbus will then participate in the development on the same cost and risk basis as DXS and DWPF. In addition, the joint venture includes a provision for Cbus Property to make a performance based payment to DXS on development completion.

DXS has also granted DWPF, who own a 31.8% interest, an option on similar terms to increase their ownership in the venture by approximately 1.5%, thus regularising interests to three equal shares.

Since 31 December 2008, other than the matter discussed above, the directors of the Responsible Entity are not aware of any matter or circumstance not otherwise dealt with in their report or the Financial Statements that has significantly or may significantly affect the operations of DXS, the results of those operations, or state of the DXS' affairs.

DEXUS DIVERSIFIED TRUST Page 26 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Note 12. Segment information

Business segments

The Trust operates in the following segments:

(a) Retail - investment in the retail property sector;

(b) Office and car park - investment in the office and car park property sectors; and

(c) Industrial - investment in the industrial property sector.

	Retail	Office	Industrial	Eliminations /	Consolidated
31 December 2008		& Car Park		unallocated
	\$'000	\$'000	\$'000	\$'000	\$'000
Property revenue	11,200	161,472	171,040	(945)	342,767
Management fee income	-	-	-	28,333	28,333
Interest revenue	184	470	428	905	1,987
Share of net profits / (losses) of associates accounted
for using the equity method	-	27	-	-	27
Net gain on sale of investment properties	-	(541)	104	-	(437)
Net foreign exchange gain / (loss)	-	70	88	(4)	154
Other income	-	82	-	441	523
Total segment revenue/income	11,384	161,580	171,660	28,730	373,354
Segment result attributable to stapled security
holders	8,297	(95,403)	(445,711)	(421,443)	(954,260)
31 December 2007	Retail	Office & Car Park	Industrial	Eliminations / unallocated	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000
Property revenue	24,267	154,138	160,899	-	339,304
Interest revenue	486	748	893	3,107	5,234
Share of net profits / (losses) of associates accounted
for using the equity method	3,629	(4,088)	-	1,931	1,472
Net gain on sale of investment properties	1,366	-	5,919	-	7,285
Net fair value gain of investment properties	709	291,949	43,432	-	336,090
Net foreign exchange gain / (loss)	-	(3)	2,223	-	2,220
Other income	7	57	3	-	67
Total segment revenue/income	30,464	442,801	213,369	5,038	691,672
Segment result attributable to stapled security holders	21,832	375,863	111,817	(76,832)	432,680

DEXUS DIVERSIFIED TRUST Page 27 of 30 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Note 13. Earnings per unit

(a) Basic earnings per unit on (loss)/profit attributable to equity holders of the parent entity

	31 Dec 2008	31 Dec 2007
	cents	cents
	(5.69)	2.41
(b) Diluted earnings per unit on (loss)/profit attributable to equity holders of the parent entity
	31 Dec 2008	31 Dec 2007
	cents	cents
	(5.69)	2.41
(c) Basic earnings per unit on (loss)/profit attributable to stapled security holders
	31 Dec 2008	31 Dec 2007
	cents	cents
	(30.61)	14.82
(d) Diluted earnings per unit on (loss)/profit attributable to stapled security holders
	31 Dec 2008	31 Dec 2007
	cents	cents
	(30.61)	14.82

(e) Reconciliation of earnings used in calculating earnings per unit attributable to equity holders of the parent entity

	31 Dec 2008 \$'000	31 Dec 2007 \$'000
Net (loss)/profit	(951,893)	437,617
Net loss/(profits) attributable to equity holders of other stapled entities (minority interests)	776,783	(362,409)
Net (profit) attributable to other minority interests	(2,367)	(4,937)
Net profit attributable to the unitholders of the Trust used in calculating basic and diluted earnings per unit	(177,477)	70,271
(f) Weighted average number of units used as a denominator
	31 Dec 2008	31 Dec 2007
Weighted number of units outstanding used in calculation of basic earnings per unit	3,117,484,218	2,920,052,460